Question 1

What is a Systematic Investment Plan (SIP)?

Accepted Answer

A Systematic Investment Plan (SIP) is a method of investing where you contribute a fixed amount of money at regular intervals (e.g., monthly) into a mutual fund or other investment vehicle. It promotes disciplined investing and helps average out the cost of your investment over time.

Question 2

What is a SIP 'step-up' or 'top-up'?

Accepted Answer

A SIP step-up, or top-up, is when you increase your periodic investment amount at regular intervals, typically annually. This feature, which our calculator supports, can significantly accelerate your wealth creation by aligning your investments with your increasing income.

Question 3

How does SIP help in rupee cost averaging?

Accepted Answer

Rupee cost averaging (or dollar-cost averaging) is an investment strategy that aims to reduce the impact of volatility. When you invest a fixed amount regularly, you buy more units when prices are low and fewer units when prices are high. This can lower the average cost per unit over time.

SIP Calculator

SIP Calculator

Inputs

Result